Frequently Asked Questions​

A house in multiple occupation is a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities, such as a bathroom and kitchen

In the majority of locations across England, if you have no more than 6 occupants, then the change in Use Class from C3 to C4, represented in the change from single occupation to multiple occupation, is permitted under Permitted Development legislation, however, you should always check with the local council, as they may have restrictions in place.  

Properties which have above 6 occupants will require a full planning application to comply with planning regulations, and obtain the permitted use class known as ‘Suis Generis’ (which is Latin for ‘of its own kind’, and as such is a term used to categorise buildings that do not fall within any particular use class for the purposes of planning permission). 

The most common form of restriction of HMO’s is via Article 4, which is used to limit the creation of new HMO’s in areas where there is already a high density of them in existence. This tends to be in the larger towns and cities, and the Councils there will publish the exact areas and roads where it is in place. Although in essence Article 4 simply means that you need to make a full planning application to be granted permission for use class C4, in reality you are very unlikely to have that permission granted.

HMO licences are issued and monitored by the Environmental Health department within Councils, which is separate from and serves a different purpose to the planning department. Licences are a means for monitoring compliance of HMO’s in terms of health and safety, comprising amenity standards, and electrical, fire and gas safety within the property. 

It should be noted that the requirements for an un-licenced property are the same as those for a licensed property, with the only difference being that the council do not make regular inspections.

Unlike a single let property, it is not a requirement to publish and give a copy of the EPC to tenants of an HMO, however, if you wish to comply with regulations relating to serving a Section 21 notice, then you will still need to give your tenants a copy of a current EPC for the property.

Mortgage lenders view properties differently, depending on the rental agreements which are going to be used for the property. HMO lending is different from standard Buy to Let lending and will take into account that the property is rented by the room and on separate agreements to each tenant. 

If a room tenancy is being created for a tenant to use as their primary residence, then it should be made using an Assured Shorthold Tenancy Agreement. While some people use a Licence Agreement, this is incorrect, and should only be used if the occupant can evidence having rights to a primary residence. In the event that a Licence Agreement is used and goes to court, it will be deemed to be an Assured Shorthold Tenancy Agreement.

We use an internal repairing lease between our company and the property owner.

Managing house shares is a lot more work than a standard single let property, however, by renting a property by the room individually, it generates an increased yield. We share that increased yield with the landlord and in doing so, are able to cover a lot of the costs which they would usually incur.

The rental agreement between ROOMS® and the landlord sets what the monthly rent is, irrespective of whether the property is fully let, or what maintenance costs have been incurred.

Yes, insurance for an HMO will be based on the information given while completing a detailed fact find with your insurance broker.

Our house shares are designed with working professionals in mind, with the majority, being between 25-35 years of age. Having said that, we have seen the age range increase upwards over the last 10 years, and our houses reflect that, with some households geared towards more mature occupants. We do not rent to students. 

The difference isn’t so great. The private rented sector in general has experienced multiple changes and additional regulations relating to the housing act, licensing, GDPR and tenant management, however, due to their nature, HMO landlords and managers have a greater duty of care for their tenants which has resulted in greater regulation. 

Changes in compliance across the private rented sector have increased the workload involved in meeting requirements over the years and that is certainly the case with HMO’s. The key to managing that workload is to have effective systems backed up by good software solutions so that managers remain efficient. 

Some of the more challenging aspects of management come with tenants who are less helpful than they could be; and this can be quite demanding and isn’t for the faint hearted.